
This article was written by Douglas Idugboe and originally published on Smedio.
Twitter, the wildly popular micro-blogging service, announced this week it’s acquiring the start-up keyword bidding company AdGrok for under $10 million. That’s not bad for a young company that just transitioned out of beta not too long ago. The AdGrok founders will immediately shut up shop and join Twitter in developing its fledgling “revenue engineering team.” That is, except AdGrok’s CEO Antonio Garcia-Martinez, who jumped ship to rival Facebook before the deal was inked.
AdGrok’s AdWords Tool Just What Twitter Needs
The AdGrok team will be handed the monumental task of expanding the new advertising platform of Twitter, a company that has failed to turn a profit since its inception in 2006. However, Twitter has a bright future ahead, and the AdGrok team with its brilliant tool that automates Google AdWords campaigns, could potentially transform Twitter’s revenue model into a profitable one.
Twitter is on an Acquisition Frenzy
Twitter is positioning itself to go full throttle with the development of its monetization platform of Promoted Products offerings. The promoted services would be geared towards corporate power users, including tweets, trends and accounts for small to medium size businesses. AdGrok’s Google AdWords dashboard is nearly identical to what Twitter has in mind for its promoted services. The acquisition is a good fit all around, and Twitter may be just getting started with its mergers and acquisitions deals.
read more